How do I enter Capital Gains tax withheld on the sale of a home as listed on the Closing Disclosure?

[PML2102]

I live in NJ.  I owned a property in GA that was a second home (did not qualify as primary, and I didn't rent it out).  I sold the property.  On the Closing Disclosure for the sale, under the heading "Due From Seller at Closing", there is a line-item for "capital gain tax" with an amount of $xxxx.00. This is an amount that was withheld from the proceeds and not paid to me.

1.  Is this withholding amount all State, all Federal, or a combination?  I asked the closing agent for a breakdown and she said "capital gains is only a state tax, not Federal".  I'm pretty sure that is not a correct statement.

2.  How do I enter this amount in TurboTax?  Under 'Personal --> Deductions and Credits --> Estimates and Other Taxes Paid --> Other Income Taxes --> Withholding not already entered on a W-2 or 1099' I entered the amount entirely as a state amount for GA.  Is this correct or not?  I'm reluctant to file the return without being confident that I've entered it correctly.

Thanks.

[MichaelL1]

You will need to find out if this is only a State tax withheld or Federal or both.

I will show you in the answer below how to enter this once you find this out. --opps just saw you found out how to do it.  You do need to find out exactly what it is for Federal or State and the amount for each BEFORE you file.

[MichaelL1 · Accepted solution]

You do need to find out exactly what it is for Federal or State and the amount for each BEFORE you file.

Then enter it exactly as below once you find out.  Whoever withheld these amounts at closing has to remit them to Federal and/or State, so someone has to know.

Under 'Personal -->

Deductions and Credits -->

Estimates and Other Taxes Paid -->

Other Income Taxes -->

Withholding not already entered on a W-2 or 1099'

[PML2102]

The title company / closing attorney both seemed very irritated that I asked for clarification, but I have it in writing (email) from them that it was all paid to the state and none to the IRS.  I entered it as described, owed a significant amount for Federal, and am getting an even more significant refund from GA.  Thanks for the help.

[MichaelL1]

My pleasure and really great that you pursued this.

You know when someone takes money on your behalf and turns it over to taxing authority they should be happy to provide you the details and should have done so at closing so you did not have to ask for it later.